(Sharecast News) - Security services firm G4S said on Wednesday that underlying earnings in the first nine months of 2020 remain ahead of last year as a decline in revenue was offset by cost control and reduced interest costs.
Group revenues edged down 2% but G4S said this was "more than offset by tight direct and indirect cost control and reduced interest costs, the latter reflecting both refinancing benefits and the group's improving net debt position".
G4S, which recently rejected a £3bn hostile takeover bid from Canada's GardaWorld, said it has retained and won new contracts with an annual revenue contract value of £2bn, including the recently announced 10-year, £30m per annum contract to deliver custody and rehabilitation services at HMP Five Wells in the UK.
Chief executive officer Ashley Almanza said: "G4S today is a focused global business delivering integrated security solutions which combine our risk consulting, security, technology and data analytics capabilities.
"The benefits of our strategy, strong execution and rapid response to Covid-19 continue to be reflected in the group's results during 2020 with resilient revenue, earnings and cash flow."
Commenting on the update, GardaWorld said: "Today's announcement conceals more than it reveals compared to previous updates. Revenues are sagging, there is no mention of profit or cashflow and the business performance is obscure.
"G4S congratulates itself for 'retaining new contracts' but makes no mention of the quantum of contract losses. If these numbers demonstrate the resilience of the business, as the board says, why is the dividend not resumed at any level?"
13 Apr 2021 11:31
Allied Univeral closes in on G4S takeover as acceptance reaches 90%
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